GM’s Interrogation on the Hill: Mary Barra’s Trial by Senate

Mary Barra, chief executive officer of General Motors Co., speaks during a Senate hearing in Washington on Wednesday.

Bloomberg

General Motors Co.’s chief executive, Mary Barra, was in Washington Wednesday to explain to the U.S. Senate—a body known for statesmanship and long speeches—why her company was slow to recall vehicles linked to 13 deaths. But the leader of Detroit’s biggest auto maker ended up in what amounted to a courtroom: four senators on the subcommittee had not totally shed their earlier identities as prosecutors—and were clearly prepared to use every legal tool they had to press the witness.

This helps explain why Ms. Barra was hit so much harder than on Tuesday, her first day testifying on Capitol Hill. Of the 13 lawmakers on the Commerce Committee’s consumer protection subcommittee, nearly a third had previously worked as prosecutors. And because the four former prosecutors actually showed up—unlike five colleagues who skipped out—the hearing ended up having the feel of a trial, with senators displaying a skill set that included challenging reluctant witnesses, pinning down facts, exposing discrepancies and the occasional prosecutorial zinger.

“It might have been the ‘Old GM’ that started sweeping this defect under the rug 10 years ago,” said Sen. Claire McCaskill (D., Mo.), a former Missouri prosecutor and chairwoman of the subcommittee. “But even under the ‘New GM’ banner the company waited nine months to take action after being confronted with specific evidence of this egregious violation of public trust.”

Ms. McCaskill then proceeded to lay out facts showing out that a GM lawyer had been told nearly a year ago about an ignition-switch change that is now at the heart of the recall.

Ms. Barra calmly took the blows from the senators, often referring to an investigation undertaken by Chicago attorney Anton Valukas to get to the bottom of the situation. When pressed her on the timeline of the recalls, she said she became aware of the defects on Jan. 31 and said she would keep everyone fully informed on the probe.

In her opening statement, she said she took full responsibility for the situation. “This is an extraordinary situation. It involves vehicles we no longer make. But it came to light on my watch, so it is my responsibility to resolve it. When we have answers, we will be fully transparent with you, with our regulators and with our customers,” she said.

Sen. Richard Blumenthal (D., Conn.) picked up where he had left off when he had been Connecticut’s attorney general. In that earlier job, Mr. Blumenthal and joined other state attorneys general to fight a 2009 bankruptcy court restructuring that shielded the new GM from liability for defects in vehicles built before the overhaul. He lost that fight but wasted no time using the hearing to try again, asking Ms. Barra to put money into a fund to compensate victims who might otherwise have no recourse.

“There are civic as well as legal responsibilities and we want to balance and make sure we are thoughtful in what we do,” Ms. Barra explained.

For good measure, he picked apart Ms. Barra’s position that the Cobalt and other recalled small cars were safe to drive as long as drivers used only a key and not a heavy key chain.

“Even with all the weight off the key chain, doesn’t that recall notice tell you that cars should not be driven where there are rough road conditions or other kinds of potential jarring events?” Mr. Blumenthal challenged.

Ms. Barra said GM had done testing on proving grounds that have extensive capabilities to jar the vehicle, and that the car had performed with just the key or just the key in a ring, but said that the company would provide loaners to people who were not comfortable driving the cars.

Mr. Blumenthal’s challenges are more than academic. At a time when GM is facing a Justice Department investigation, an appearance on Capitol Hill carries special risks because federal prosecutors have not been shy about filing charges against companies and individuals for misleading or lying to Congress. That is a fate that befell both automaker Toyota Motor Co. and oil company BP PLC. A former BP official is still fighting off charges that he misled Congress in statements made four years ago to the House Energy and Commerce Committee.

Sen. Amy Klobuchar (D., Minn.), a former attorney for Hennepin County in Minnesota, backed up Mr. Blumenthal, trying to lock in information about how Kenneth Feinberg, a compensation expert newly hired by GM to evaluate whether to compensate the families, would make his decisions.

And Sen. Kelly Ayotte (R., N.H.) a former New Hampshire attorney general, raised a prosecutor’s worry: “How are you as CEO going to guarantee that no documents are withheld from not only Mr. Valukas but also investigations that are being conducted by the government?” she said, before pressing for Ms. Barra to make available Anton Valukas, a former U.S. attorney, who is leading an internal GM investigation into what went wrong.

Ms. Barra said that Mr. Valukas was “very experienced” at such investigations, and that while it wasn’t her decision whether to make him available to the committee, she would share his

The tough talk is why it was so surprising that Ms. McCaskill concluded the hearing on a more courteous—some might say senatorial—note.

“To the extent this has been a rough day for you, it is coming from the right place,” Ms. McCaskill said. “This is an incredibly important moment in your corporate history and you’re in charge—and you’ve got to make some very tough decisions going forward.”

About Washington Wire

Washington Wire is one of the oldest standing features in American journalism. Since the Wire launched on Sept. 20, 1940, the Journal has offered readers an informal look at the capital. Now online, the Wire provides a succession of glimpses at what’s happening behind hot stories and warnings of what to watch for in the days ahead. The Wire is led by Reid J. Epstein, with contributions from the rest of the bureau. Washington Wire now also includes Think Tank, our home for outside analysis from policy and political thinkers.